Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 SEGMENTS: PERFORMANCE PERCEPTION SEGMENT / A RELATIVELY LITTLE KNOWN BRAND
CHOICE 3 COMPONENT: CHANGE THE LIST PRICE
| No. | SIC | Year | Notes |
| 1 | 2030 | 1994 | We had to be anywhere from 10-15% cheaper than a premium brand competition, Tropicana or Minute Maid, to sell. |
| 2 | 2711 | 2003 | Abitibi and Bowater combined have 55% market share. The next biggest competitor is Kruger, who has only 7% share. So the two biggest companies keep the largest publishers and then allow the smaller competitors in the marketplace to keep a full order book at some price lower than the leaders. The follower companies gradually allow their price to creep up closer to the leaders. These smaller competitors offer a discount of as much as $50 a ton as the price goes up (this is $50 on about $600 a ton base price) and then quickly allow the price to come within $10 or $15 a ton below the price of Abitibi and Bowater. Even then, a small difference can still move market share. |
| 3 | 3011 | 1994 | Cooper prices at 1% to 1.5% off the market price to compensate for its lack of national name-brand recognition and advertising. Michelin has a reputation as a premium pricier, pricing at about 2% above the market price for its flagship brand. |
| 4 | 5735 | 2009 | New online-music rivals have also emerged, including Amazon.com Inc., which sells many songs at a cheaper price than iTunes and without copy protection, giving users more freedom with the songs they have purchased. |
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